External reserve rises to $38.4billion, CBN says

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CBN says the nation’s external reserve witnessed a 3.7 per cent growth on August 27.

Ata Udo

The Central Bank of Nigeria (CBN) said on Wednesday that the nation’s external reserves climbed from about $38 billion (about N5.89trillion) to over $38.4 billion (N5.93 trillion) on August 27.

The apex bank claims that the nation’s external reserves have continued to grow since August 1, 2012. According to bank, the supplementary $374 million (about N57.97 billion), is the highest within the month of August and represents a 3.7 per cent rise. The external reserve dropped to the lowest level of about N3.2985 trillion on January 3.

The Minister of Finance and Coordinating Minister for the Economy, Ngozi Okonjo-Iweala, has always stated the need for the Federal Government to shore up the country’s external reserves.

At a meeting with members of the Organised Private Sector (OPS) in July, the minister said there is the need to build up the reserves to $50 billion before December this year.

Mrs. Okonjo-Iweala held that such healthy external reserves would help the country’s economy continue to stand on its feet in the event of any global economic recession.